Auto warranty refers to a particular service offered by a dealer to the car owner for a period of time from the date of sale of the vehicle. A warranty generally takes care of the cost of maintenance of a vehicle in case it suffers a breakdown.

The auto warranty is issued by the vehicle dealer at the time of handing over the car to the buyer. Any dealer, who does not issue a warranty, is liable for prosecution under US federal law. So, make sure that you collect the warranty at the time of delivery of the car.

The warranty period comes for a period ranging between three months and three years or the distance covered by the car. The choice to select a warranty is left to the car buyer. Normally, a warranty takes care of the repairs and maintenance of the car’s drive train, power train, engine, break mechanism and steering system.

The price of the warranty differs and depends on the liking of the car buyer. The best warranty package available in the market is the ‘bumper-to-bumper’ package that takes care of the car. However, the ‘bumper-to-bumper’ package is expensive when compared to other warranties.